To let my parents buy us a house?

[Anewmeanewname]

We have been looking for a new house for a while, but have struggled to find anything meeting our requirements in terms of budget, location, no of bedrooms, garden etc.

My parents offered to help. DH then suggested a (to my mind) ridiculously grand property nearby that meets all our requirements, but that is also about £350k above our budget. I asked my dps about this house (in a rather joking way) & they've just offered to buy it for us outright.

This means we'll be able to keep our current property (the mortgage is almost paid off) as a rental property. This other house is a dream house, perfect location, massive garden, huge rooms etc. The children would have an amazing house to grow up in. Our current house is a 3 bed terrace - very nice throughout and in a lovely location, but only a courtyard garden and getting too small.

My parents are rich - giving us this money won't impact upon their lifestyle in any way.

However. I still feel grasping & uncomfortable. I've never asked them for anything before & have always been proud of what dh & I have managed to achieve on our own. On the other hand, this will give our dc the sort of childhood home we could never afford otherwise.

WIBU to accept the money?

Wow that is amazing

As long as it is all out in the open (your silings fully aware etc) then I think it is a great idea. Lucky you! Pay it forward

I don't see the post as a stealth boast. The OP seems genuinely concerned by any potential ramifications of accepting the offer. I'm a bit surprised that the husband wanted to go for a house otherwise very much out of reach of their price range.

Be ultra careful about siblings. Being 'consulted' isn't the same as being treated equally and fairly.

If you have a sentimental attachment to your current house, the last thing I would think about is renting it out.
Imagine how you would feel if your tenants make alterations or worse trash the place. Not worth the heartache.

I would sell up, and either re-invest (could be in another rental property) or repay the money to your parents.

bear in mind also that if your parent die within 7 years of buying you the house, you will be liable to pay 40% tax on it. I think this would be of the purchase price rather than the value at the time of death.

Also, if you keep your existing property to rent out, when you sell it you may be liable to pay CGT

The inheritance tax is tapered, 40% if the die in the first year, 1/7 less for each year they survive, 0% after 7 years.

If they could afford it hell yeah!

It does seem a bit grabby the way your parents offered to buy you a house and your husband then found a very expensive house completely out of your range and showed you. Then you told your parents about it.
Can I ask why you suggested this very expensive house to them rather than one that was a little bit more within budget. They were offering help but you both seem to have wanted to see how far you could push it.

What do it says....

As my prev post this is the bit that stood out to me ....he suggests a grand place and you mentioned it in a
'Jokey way' probably knowing they would offer....

You will then rent out your current home and have no mortgage?....do your siblings have mortgages?

As you say they are undoubtedly rich but Dh shouldn't suggest taking advantage really.

It's an amazing offer though and you sound as though you are very grateful for their wonderful support.